The Securities and Exchange Board of India (SEBI) will investigate allegations of disclosure violations revealed in an indictment filed by the Department of Justice (DOJ) and the United States Attorney for the Eastern District of New York , according to sources. . “SEBI will take action in case of violation of disclosure. The other corruption charges do not fall within the jurisdiction of the regulator,” said sources close to the matter.

The indictment alleged that agents of the Federal Bureau of Investigation (FBI) searched the premises of Sagar Adani, chief executive officer of Adani Green, and Gautam Adanithe nephew of, on March 17, 2023. This was linked to the anti-corruption investigation carried out by US authorities against the company and its key executives.

“At the same time, FBI special agents provided Sagar with a copy of the search warrant and served him with a grand jury subpoena. The search warrant identified the offenses, individuals and entities under investigation,” the indictment states. However, Adani Green made no disclosure about the raid on the stock exchanges, violating SEBIListing Obligations and Disclosure Requirements (LODR) of , as this is a significant event. In case of non-compliance, SEBI may take severe action and impose monetary penalty. Given the scale and impact of Adani Groupsecurities lawyers estimate a heavy monetary penalty against the company and KMPs, if implicated by SEBI.

A year later, in response to a media report on a US investigation into the Adani group for potential corruption charges, Adani Enterprises had denied having received any notification from the US DOJ.

Around the same time, Adani Green Energy had disclosed a similar denial, but said the company was aware of a U.S. DOJ investigation into possible third-party anti-bribery laws, with which it claimed to have no connection.

The US DOJ also accused the company of failing to disclose developments relating to the anti-corruption investigation to US-based bondholders while selling them bonds.

In another complaint filed by the US SEC against Sagar and Gautam Adani, it said that Adani Green Energy had mentioned in its offer document the possibility of its employees taking actions that could expose the company to liability in under anti-corruption laws, while raising funds from its corporate bonds in September 2021.

“Lack of transparency, threats of fraud, public sector corruption and other forms of criminal activity involving government officials increase the risk of potential liability under anti-corruption laws,” the disclaimer states. -responsibility. The US SEC said it misled investors because it suggested the alleged bribery scheme did not exist.